Russian govt to allocate 10 bln rubles to subsidize loans for leasing SSJ100 aircraft

MOSCOW. Sept 2 (Interfax) - Russian Prime Minister Mikhail Mishustin has signed a resolution on extending the program to subsidize interest rates on loans that leasing companies take out in order to purchase Russian aircraft and then transfer them to air carriers, the government said in a statement.

According to the statement, the subsidy program currently applies not only to loans taken out between 2008 and 2021, but also applies to loans issued in 2022. The government intends to allocate around 10 billion rubles from the federal budget for the subsidy program.

"It is important that this not only reduce the costs for leasing companies, but also partially compensate for the growing financial burden on airlines. Consequently, additional costs should not be passed on to passengers," Mishustin was quoted as saying in the statement.

The program now specifically subsidizes purchasing 59 SSJ100 aircraft, including seven aircraft constructed this year.

The government in 2012 launched the program to subsidize interest rates for leasing companies that purchase domestic aircraft. The government reimburses 90% of the cost of paying interest on loans.